When Access National Corporation (NASDAQ:ANCX) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Access National has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I’ve summarized the key takeaways on how I see ANCX has performed. Check out our latest analysis for Access National
Could ANCX beat the long-term trend and outperform its industry?
For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend allows me to assess many different companies on a similar basis, using the most relevant data points. For Access National, its most recent earnings (trailing twelve month) is US$23.22M, which compared to the previous year’s level, has escalated by an impressive 55.65%. Given that these figures are relatively short-term, I’ve determined an annualized five-year figure for Access National’s earnings, which stands at US$14.97M This means on average, Access National has been able to steadily improve its profits over the past couple of years as well.How has it been able to do this? Let’s see if it is solely owing to an industry uplift, or if Access National has experienced some company-specific growth. Over the last few years, Access National grew its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Viewing growth from a sector-level, the US banks industry has been growing, albeit, at a muted single-digit rate of 8.20% in the prior year, and a substantial 10.79% over the past five. This suggests that whatever uplift the industry is profiting from, Access National is able to leverage this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Access National to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ANCX’s future growth? Take a look at our free research report of analyst consensus for ANCX’s outlook.
- Financial Health: Is ANCX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.